👨🏿🚀TechCabal Daily – Court dismisses $2 billion suit against Safaricom
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday Here’s a reminder to fill our survey so we know what to improve in 2024. Oh, and if you’re in Lagos, Nigeria, our sister publication Zikoko is hosting Nigeria’s biggest meat festival this Saturday. So if you’re a meat lover, buy tickets to Burning Ram by Zikoko. In today’s edition Court dismisses $2 billion case against Safaricom Nigeria to launch geospatial data repository Uber SA goes electric Gozem acquires Moneex The World Wide Web3 Opportunities Regulations Court dismisses $2 billion case against Safaricom Image source: YungNollywood A Kenyan high court, yesterday, dismissed a class action lawsuit against Safaricom and Vodafone. The case was thrown on the orders of Justice Nixon Sifuna who noted that the petitioners—the plaintiffs—had no case because they had failed to comply with the orders of the court. Backstory: In March 2023, three petitioners sued Safaricom, claiming it operates its loan service Fuliza illegally. Gichuki Waigwa, Lucy Nzola, and Godfrey Okutoyi argued that Safaricom was using M-Pesa as a banking service for which it had no licence. The petitioners also argued that they, and other M-Pesa users, should enjoy accrued interests from the M-Pesa deposits Safaricom loans to Fuliza users. The case sought for KES305 billion ($2 billion) in damages for fraudulent misrepresentation and non-disclosure of information. Uninterested plaintiffs: The case has now been dismissed as the petitioners failed to comply with an October 4 ruling which required them to serve Safaricom and 21 other defendants—including Vodafone—the evidence they were to share in court. “By the plaintiffs’ own indolence and consistent non-compliance of the court orders, they dismissed their own suit,” the judge ruled. Zoom out: It’s not the end though. The three petitioners still have the chance to file a fresh case, but so far, it looks like they either have no evidence to back up their claims in court or are uninterested in chasing what is sure to be a long and arduous process. Access payments with Moniepoint Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Open an account today here. Economy Nigeria to launch geospatial data repository GIF source: Tenor This week, the Nigerian government announced the launch of an electronic Civil Registration and Vital Statistics System (eCRVS) and geospatial data repository. eCRVS? eCRVS is a digital system that collects, stores, manages, and analyses vital events such as births, deaths, marriages, and divorces. It replaces traditional paper-based records with an electronic database, making it more efficient and secure to record and track vital information. The country’s minister of population said the move was in agreement with the resolution made at the Sixth Session of the Conference of African Ministers responsible for Civil Registration and Vital Statistics (CVRS) held at the United Nations Conference Centre in Addis Ababa in October 2022. The resolution encouraged all countries in the continent to automate the CRVS process and ensure the implementation of the United Nations Legal Identity Agenda. Lights out: Nigeria’s implementation of eCRVS systems is a positive step towards improving the accuracy and completeness of vital statistics. However, the country’s attempts at implementing tech solutions for national projects have had questionable implementations in the past. Its $663 million Bimodal Voter Accreditation System (BVAS) flopped during the last elections with the government claiming that the device was not “ready for large-scale use”. It remains to be seen whether the implementation of the eCRVS will have plain sailing. Join the Paystack private beta Paystack has launched a private beta to offer payment tools to businesses in Côte d’Ivoire, Egypt, and Rwanda. Learn more about Paystack’s entry into 3 new markets → Mobility Uber goes electric in SA Uber at the launch of Uber Package. Image source: MyBroadBand Uber will launch its first electric vehicle-based service in South Africa in December, according to MyBroadband. The vehicles will be used for Uber Package which allows users to book same-day pickup and delivery of a package within a single geographical area. In August, the ride-hailing company also launched electric scooters in Kenya which the company estimated could reduce operational expenses by between 30% to 35%. Uber stated in March that it plans for 25% of kilometres driven on the platform to be by electric cars by 2030. More on the vehicles: Electric scooters will be used for the Uber Package service, and unlike traditional electric vehicles where charging is done directly through a station or outlet, the scooters will feature hot-swappable battery packs. The service will commence in Cape Town in December 2023 and expand to Joburg in February 2024. Oh, the irony: Of course, the irony here is that Uber is launching the service amid South Africa’s power challenges as the country’s national grid struggles to keep up with demand. Last month, the World Bank approved a $1 billion loan to help the country reform its energy sector. Despite the struggles, South Africa has the most advanced e-mobility market in Africa according to Statista, with about 1,000 electric vehicles in 2022 out of a total fleet of 12 million automobiles. Acquisitions Gozem acquires Mooneex The Gozem and Moneex teams. Image source: Moneex Gozem, a Togolese super app platform has acquired Moneex, a Beninese fintech. How much? The acquisition details were not announced but Moneex’s founders will take an equity stake in Gozem. Moneex? Launched in 2021 as Kryptonite Africa, Moneex started as a crypto remittance startup. It then pivoted in 2022 to provide multi-currency accounts to businesses and individuals. A bigger play: Gozem’s acquisition of Moneex allows the super app to introduce a mobile money service—Gozem Money—which will launch in Togo and Benin in the coming days. The mobile money feature will add to the list of available offerings on Gozem’s super app which features on-demand transportation, food delivery, and courier services. Martial Konvi, global head of product at Gozem says the acquisition of Moneex represents the company’s commitment to providing digital services
Read MoreProlific VC firm MaC Ventures shares its investment thesis for Africa
In a fireside chat at the Moonshot by TechCabal Conference, Marlon Nichols, a managing general partner at MaC Ventures, a firm with over $20 million invested in Africa, shares his investment thesis. Funding for Africa’s tech ecosystem has been on a downward spiral since the start of the year as interest rates rise globally and investors continue to make safer bets. However, some venture capital firms are still increasing their footprint on the continent. One such VC firm is MaC Ventures, a sector-agnostic firm with $500 million in assets under management and an African portfolio with more than 10 startups. MaC Ventures invests up to $3 million in seed-stage companies as its initial entry ticket size, in exchange for 10–15% ownership in the companies on a fully diluted basis. “For us, seed means that you have a viable product that you have recently taken to market, or that you’re about to take to market,” Nichols said in a fireside chat with Tomiwa Aladekomo, CEO of Big Cabal Media, at the recently-held Moonshot by TechCabal conference. “We feel we can add the most value to the go-to-market strategy,” Nichols added. Some of the African startups that are in the firm’s portfolio include Big Cabal Media, the parent company of TechCabal; Spleet, a prop-tech startup; and Prembly, a digital security startup. Nichols shared that the firm’s investment thesis on the continent is centred on finding the challenges “stopping people from living their best lives”. “We want to make money for our investors,” Nichols said, “so we look for really big problems in big markets that are being tackled by very smart people that have a fit with the market, the company, and the challenge.” With 197 startups in their portfolio, Nichols said MaC Ventures decided to invest in Africa after being introduced to Ajua, a Kenyan customer experience startup. “What happens is [that] you start to build this network of people and you learn about more exciting opportunities, so you just start writing more cheques.” Due diligence and corporate governance have been running themes in Africa’s tech ecosystem this year as several startups have closed due to bad corporate governance. On due diligence, Nichols said that the firm relies on angel investors and founders in their portfolio for advice and validation of the pitches they receive in markets where they do not have enough context. Watch the full video of the fireside chat with Marlon Nichols and Tomiwa Aladekomo on YouTube.
Read More
🚀Entering Tech #47: The 21-year-old product design expert
How Abdulhakeem contracts for international startups and companies. 08 || November || 2023 View in Browser In partnership with #Issue 47 Abdulhakeem Olasupo’s product design journey Share this newsletter Greetings ET readers Before we dig into today’s edition, here’s your reminder to watch some Entering Tech shorts today. Today’s edition explores how you can become a brand strategist. This edition features Ayomide Ajayi, a marketing and communications manager at Dojah who shares some critical lessons in one minute. Watch it here. by Timi Odueso Tech trivia questions Some trivia before we begin. Answers are at the bottom of this newsletter. What was the first commercially available laptop? When was the first smartwatch released? A product design expert at 21 If you’re looking for a story that’ll inspire you to perspire, here’s one for you. Abdulhakeem Olasupo‘s journey in the tech industry is an intriguing case study of a young professional product designer finding his footing amidst the ever-evolving world of technology. At just 21, his accomplishments are indeed noteworthy. Abduljakeem Olasupo He’s been a consultant at several international companies like Swarm, Spottr, and Brain Trust. He’s also co-founding a startup, Studio Duo, where he and a team of designers and builders are empowering startups to design and build faster with Nocode. Simplify with Zido Streamline your global supply chain from procurement to distribution with Zido. Start here. How Abdulhakeem did it Abdulhakeem’s path hasn’t been so straightforward though; his path is fraught with critical decisions that have shaped his career. UI Designer (Intern), Hotels.ng Apr 2017 – Aug 2017 UI and Graphic Designer, Tribesquare Aug 2018 – Apr 2019 Co-founder and Creative Director, Digital Graphic Hub Sep 2019 – May 2020 Figma Specialist (Contract), Spottr Jun 2021 – Sep 2021 Founding Product Designer, Stealth Startup Jan 2022 – Aug 2022 Product Design & No-code Consultant, Swarm Mar 2022 – Present Senior Product Designer, Braintrust Apr 2022 – Present Founder, Studio Duo Apr 2023 – Present Hailing from Ilorin, Nigeria, Abdulhakeem’s initial foray into tech was in graphic design, sparked by an opportunity presented by his brother’s company at the age of 14. What began as a curious experiment soon turned into a full-fledged journey into the world of design. However, his early transition from graphic design to product design is a calculated move to adapt to the trends and opportunities in the tech world. The Kwarabuild community, a tech-focused network based in Nigeria, played a crucial role in this trajectory. In 2018, he attended a coding event organized by the community, seeking to expand his horizons. While he might not have fully grasped the implications at the time, the connections he built within Kwarabuild proved invaluable. It underlines the significance of networking and support systems in the tech industry, where collaborations and partnerships can determine one’s success. What distinguishes Abdulhakeem’s journey is his relentless pursuit of self-improvement. Faced with limited access to formal tech education, he turned to online platforms, such as YouTube and Udemy, for his education. As he ventured further into the realm of product design, Abdulhakeem started accepting freelance projects, gaining recognition beyond Nigeria’s borders. Today, Abdulhakeem Olasupo stands as a 21-year-old techie with a global presence. Yet, his journey is a stark reminder of the daunting challenges that persist in the tech industry, irrespective of one’s age. While youth can be an advantage, it can also be a double-edged sword. The pressure to prove oneself in a field that traditionally values experience can be immense. How you can do it too Abdulhakeem’s young age doesn’t define him; it’s his pragmatism that sets him apart. In our interview, he shared five critical pieces of advice for young techies everywhere: Image source: Zikoko Memes “Know thyself”: The first and foremost advice Abdulhakeem offers is to understand one’s own skills and aptitudes. Before delving into the vast expanse of the tech world, take time for self-reflection. Recognise what you are genuinely passionate about and what skills come naturally to you. Knowing your own strengths and weaknesses is the first step towards a successful tech journey. Leverage online resources: Abdulhakeem’s journey highlights the power of online learning. Access to online platforms such as YouTube and Udemy can provide you with valuable knowledge and skills. These platforms are a treasure trove of information, often more up-to-date than traditional educational institutions. Build your personal brand: “Carving out your unique identity in the tech world is crucial,” Abdulhakeem says. “Share your work online, write articles, create portfolios, and showcase your skills. A strong online presence not only helps you get noticed but also enhances your credibility in the tech community.” Embrace networking: Networking is more than just a buzzword; it’s a lifeline in the tech industry. Join tech-focused communities, attend events, and connect with fellow enthusiasts. Abdulhakeem’s own journey was significantly shaped by the Kwarabuild community, emphasizing the importance of collaboration and partnership. Seek mentorship: Abdulhakeem’s experience with mentorship underscores its value. One of his mentors, Victor Fatanmi of Fourth Canvas, has been indispensable to his growth. Find mentors who have already travelled the path you’re embarking on. They can provide guidance, support, and insider knowledge that formal education may lack. Abdulhakeem Olasupo’s journey is a testament to the complexities of the tech industry. It’s a story of passion, resilience, and a willingness to confront the challenges head-on. As the tech landscape continues to evolve, we hope his experiences provide valuable insights for every young tech enthusiast. Apply for the Payaza Hackathon 2.0 Calling all innovators to the Payaza Hackathon 2.0. Payaza is searching for game-changing solutions, innovative technologies, and inventive concepts that can leave a mark on the world. Brainstorm ideas, and make a submission. Visit our website to learn more. You can be a product designer too Check out some of these resources that can upskill you into a kickass product designer. Product Design (UI/UX) by The Moringa School Price: Ksh 142,500 ($1,180) Duration: 16 weeks Tools Needed: Internet + laptop Level: Beginner Get Course Product Design by Utiva Price:
Read MoreCV VC wants to invest $20 million in African crypto startups. Here is how
Ask An Investor episode featuring Brenton Naicker, principal and head of growth at Crypto Valley VC (CV VC)’s Africa operations. According to data by ChainAnalysis, Sub-Saharan Africa has the smallest crypto economy of all regions, accounting for 2.3% of global transaction values between July 2022 and June 2023. In that period, the region received an estimated $117.1 billion in on-chain value. However, in terms of volume, countries like Kenya, Nigeria, South Africa, and Tanzania had some of the highest grassroots adoptions in the world and ranked in the top 20 Global Crypto Adoption Index. Figures show that transaction volume made up of retail-sized transfers in Africa is at 7%, against the global average of 5.5%. Despite the fact that African blockchain startups raised $474 million in 2022 to build solutions for the increasing adoption of the technology—up 429% in a year—this is still a pittance relative to the rest of the world. This is a challenge that Crypto Valley VC (CV VC) is trying to solve through their $20 million Africa Fund. The fund invests in early-stage founders across the African continent who are solving some of the emerging markets’ largest problems using blockchain technology. To understand the history of CV VC’s Africa involvement and to get a better understanding of its investment philosophy, TechCabal caught up with Brenton Naicker, principal and head of growth of the firm’s Africa operations. As part of the Ask An Investor series, Naicker speaks on the state of crypto innovation and funding in Africa, how to accelerate adoption as well as the unique opportunities that the continent holds for crypto innovators. Please tell us about the work you do at CV VC Brenton Naicker: I’ve been quite privileged to be in the Web3 space for about eight years now. I was part of the industry organisations that founded the South African National Blockchain Association and the Crypto Assets Association of South Africa. I also spent two years leading business development, growth and expansion at Binance where I launched the sub-Saharan African markets including Francophone Africa. During that time, I became passionate about the ability of blockchain technology to solve real-world problems for everyday people. And that’s what sort of led me to join CV VC (Crypto Valley Venture Capital) where I have been for two years now. So we started back in 2015-2016 in Zug, Switzerland, also know as the Crypto Valley. CV VC was an ecosystem business focused on creating an environment for the startups to come together and learn from each other through workshops, webinars, and industry reports. As the ecosystem started growing because the technology became very popular, there was a lot of economic value that was created. Our founders realised very quickly that unless we were investing, we weren’t participating to the highest level. So fast forward a couple of months and we set up our first global fund out of Switzerland which was sector-agnostic and investing in companies that used blockchain technology. As the world and the industry started maturing, a lot of stuff started happening outside of the ecosystem in Switzerland and so to remain at the heart of everything, we had to start expanding our footprint out of Switzerland. So we launched our hubs in Berlin and Lisbon. Our presence in Africa started circa 2020. We were approached by the Swiss Economic Cooperation Organisation to recreate the same Crypto Valley model in Africa and they gave us some seed funding. With a lot of support from the Swiss government and embassies in Africa, we launched in mid-2021 to create a thriving Web3 ecosystem based out of Cape Town, South Africa, with a Pan-African focus. And that’s when I joined the team. It became clear very soon after that that the use cases that we were seeing in Africa, as well as the maturity of the startups, were unlike anything that the global team was used to. And off the back of that, we decided that the opportunity was so great in Africa that this ecosystem warranted having a fund of its own. So we raised a $20 million Africa Fund focusing on early-stage African Web3 startups. It is paired with an accelerator program running out of Switzerland. It’s a 10-week program whose content comprises 50% MBA-type content and 50% industry-specific content. We have used our relationships and our networks in the space to bring in some of the best technical talents to come and teach about aspects of building blockchain products. In terms of our chequewriting, we offer $135,000 investments for 7% on a convertible note. We also do direct investments in seed, pre-Series A, and Series A but it’s very unlikely that our first ticket will be in a Series A round but rather will most likely be a follow-up. And those ticket sizes are generally anywhere between $200,000 and $500,000. Although I stated we are sector-agnostic, we tend to focus on four verticals which are fintech (remittances, micro-payments as well as SME lending and credit), infrastructure, healthcare and the creative economy which includes NFTs, the metaverse, etc. To date, we’ve made 14 African investments. Six of those were before we actually had the Africa Fund and eight of them are from the Africa Fund with six being via our accelerator, and two of them being direct investments. What would you say is the state of Web3 innovation in Africa at the moment? BN: In terms of the maturity and depth of the Web3 space in Africa, I think it’s almost a tale of a two-edged sword in the sense that the grassroots adoption of the technology is very significant. Although the total aggregate volumes are not the same as in US or European markets, if we look at it from a population penetration perspective, crypto as a technology is far more popular in most African countries than it is in most of the big developed markets. The problem we are seeing from the venture side is twofold at the moment. One is the macro
Read MoreThis 25-year-old converted her love for cars into a thriving mobility tech startup
While in university, Chichi Arinze decided to find a side hustle to support herself and pay her tuition at Babcock University, which her parents could not afford. After trying real estate and failing, she turned to something she had always loved: cars. Arinze noticed that students at her private university often travelled out of state during the weekends, so she decided to build a business around that. The vehicles that students typically boarded were uncomfortable and congested, so Arinze decided to rent smaller cars and hire drivers to transport the students instead. What started as her organising car trips for students from her school, in south-west Nigeria, to Lagos, 45 kilometres away, and back, soon turned into a thriving mobility tech startup, AutoGirl. AutoGirl was launched in 2019, and offers online vehicle rental services across three categories: cars, boats, and jets. Arinze has driven the company beyond the walls of her alma mater to become a company operating in multiple cities, with 18 full-time staff and 20 contract drivers. According to Arinze, AutoGirl has completed 3,000 rides in Nigeria and provides mobility services to about 123 companies. TechCabal had a chat with Arinze about the challenges of operating in the mobility sector and what her plans for the future are. What would you say are the challenges with operating a mobility tech startup in Nigeria? In the beginning, when I was involved in the sale of vehicles, one of the challenges was actually being shortchanged as the middleman. This turned out to not be a problem in rentals because people really need a company to trust and hold accountable when it comes to taking care of their mobility due to the safety risks that come with it. Another challenge has been the rising cost of fuel as it threatened to cut down our profit margin. However, we’ve been able to come up with the solution of having different price points for fully-fuelled vehicles, minimum fuelling, and no fuelling. This prevented us from having to increase our prices by almost 50% when the fuel subsidy was removed. Dealing with drivers has also been challenging as it demands a lot of time and resources to make sure that they are fully trained and verified. Security is a very important component of mobility tech. How do you approach that? When we were entering the rental space, it was very important for me to actually do some competitive analysis of the people that were already in the space. I noticed that insecurity was one of the major reasons why people did not fully enjoy the services of other players already in the space, and decided that security was a strong point that we didn’t want to negotiate on or even gamble with. This is why the number of our drivers does not increase as rapidly as all the others do because there’s a lot that goes into their verification. We make sure to verify their locations, their houses, and their guarantors, just to be sure that the people using our service are safe. We have an entire team that is focused on checking in with drivers every single hour because a lot of our service quality comes from the quality of drivers we have working with us. We have trackers on the vehicles, as well as an operations team whose job it is to know the location of every vehicle at any point in time. What are some things that you wish you knew before venturing into the mobility sector? That I needed to move faster and build our technological infrastructure earlier than I did. If I had deployed resources into making sure the platform was built with the momentum we got in our first year, we would be much bigger than what we already are. Mobility tech is already becoming an interesting sector as, every day, more players are starting to see the viability. Having the first-comers advantage of an online platform that was already being used as far back as 2019 would have really helped. Have you experienced some challenges in terms of wanting to expand? Expansion is never easy because you’re going into uncharted territories, but one thing that has helped us is our strategy. This includes having launch managers in every city that we are launching in, and that kind of helps to give us complete local context and also foster trust among the people who are going to be our partners. Expansion is also expensive, but thankfully, we’re doing it at a time when there’s a lot of demand for our services. What are your future plans for AutoGirl? We have plans to expand to other cities in Africa, which makes me excited because I see it as a way to encourage foreign investors, tourists and businesses to come to Africa. They no longer have to worry about how they’re going to move while they’re in a city in Africa and are now assured of safe mobility while they are in the country. We are looking to enter African cities that have a large number of expatriates like Abidjan, Kigali, and Nairobi. The goal in the next five years is to expand to at least five African cities in Africa. What is driving the high interest in mobility tech? The market is ripe, and people can now see companies like ours that have built a car-rental marketplace with a model that is sustainable. Because, when we started, there were lots of questions about whether this would work. This year alone, we have seen different players launch in the market, and I believe that the reason is that they are seeing how much of a scalable business model this is. Nigeria is a country of people who like to have fun and show up well. We have a lot of events on a daily basis that people need to move around for. The need for mobility is almost as important as the need for food as people will always
Read MoreNigerian startups win big at Global Startup Awards Africa
The Global Startup Awards Africa named the 16 category winners at the GSA Africa Summit in Addis Ababa, Ethiopia. Nigerian startups were the biggest winners, winning four categories out of 16. Four Nigerian startups were recognised at the Global Startup Awards Africa, Addis Ababa, gaining a chance to compete internationally to gain further recognition and funding. Awabah, a financial services startup serving Nigeria’s informal sector, was named ‘Best Newcomer,’ while tech training and consulting firm Dataleum emerged as ‘Best Edtech.’ The two other winners from Nigeria are the virtual hospital platform Zuri Health (Future Shaper Award) and Emergency Response Africa, a healthcare technology company that provides medical care to victims at the emergency scene (Best HealthTech). The GSA Africa awards began in 2021, with over 15,000 African innovators nominated from 54 countries, with the support of 300 jury members, ambassadors, and hundreds of innovation hubs across the continent. This year’s edition was held in collaboration with the Global Innovation Initiative Group (GIIG), the Ethiopian Ministry of Labour and Skills (MOLS), and the Ethiopian Ministry of Innovation and Technology (MInT) with the support of the Entrepreneurship Development Institute (EDI) Ethiopia. A total of 16 winners across different categories of the startup ecosystem were announced by the organisers. GSA Africa claims to be the largest independent startup ecosystem competition on the continent. The African winners will participate in the global round, where they will compete on an international stage at the Global Startup Awards and gain further recognition and support. In March 2023, two African startups were named global winners at last season’s grand finale in Copenhagen. Competing against more than 120 companies from 115 countries, Ethiopian greentech startup Kubik was recognised as ‘Startup of the Year,’ while the Ugandan fintech startup Emata was proclaimed ‘Best Newcomer.’ Other winners of this year’s GSA Africa awards include Egyptian women’s safety and anti-harassment app Hiryo (Startup of the Year), Kenya’s BasiGo (Best Mobility and Logistics), Ethiopian biotech company Coffee Resurrect (Best Greentech), Ghana’s Developers in Vogue (Diversity Role Model of the Year), and Egyptian e-commerce website Freeziana.com (Founder of the Year). Egyptian business designer and innovation consultant Hani W. Naguib was named Ecosystem Hero, while Mauritius’ first syndicated angel investment group, Mo Angels, was the VC of the Year. South African Web3 investment platform Momint won Best Web 3.0 Startup, and the Tunisian agritech startup that helps monitor dairy farming production MooMe, won Best Agritech Startup. Uganda’s Tech Buzz Hub was named Best Co-working Space), Egypt’s first university-based startup accelerator, the American University in Cairo Venture Lab won Best Accelerator/Incubator Programme and Zofi Cash, a Ugandan startup that is revolutionising how salaried individuals access their wages was named Best Commerce Tech.
Read MoreAfrica’s geothermal expansion gathers steam
With Kenya and Ethiopia in the lead, increased investment in the geothermal sector will double Africa’s geothermal capacity by 2050 and see the continent exceed the total installed capacity in Europe, according to a recent report. This story was contributed to TechCabal by Bonface Orucho via bird story agency. The latest report from Norwegian energy research firm Rystad Energy sheds light on the prospects of geothermal energy to play a crucial role in meeting Africa’s increasing energy demands in the coming decades. “This growth will take the continent from being the sixth largest geothermal power generator in 2023 to the third largest in 2030,” Daniel Holmedal, a senior supply chain analyst at Rystad Energy, said of the region’s current geothermal trajectory. “Developments that we project to come online given economics and demand really highlight the rapid buildout.” The forecast anticipates that investments in Africa’s geothermal sector will soar to at least US$35 billion between 2024 and 2050, driven by the surging energy demand in East Africa. Kenya and Ethiopia are poised to spearhead this growth, contributing nearly 90% of the total capacity. Their abundant geothermal resources and Ethiopia’s need to diversify its power sector, which is 88% hydro-based, will be the driving factors behind the expansion of geothermal installations in this sector, according to the report. <script src=”https://bird.africanofilter.org/hits/counter.js” id=”bird-counter” data-counter=”https://bird.africanofilter.org/hits/story?id=1418&slug=africa-s-geothermal-expansion-gathers-steam” type=”text/javascript” async=”async”></script> Power supply in both countries is expected to increase sixfold from 2023 to 2050, surging from 34 terawatt-hours (TWh) to 222 TWh. Rystad Energy projects that the geothermal capacity in Kenya and Ethiopia will soar well beyond 10 GW by 2050, with the potential to reach as high as 12 GW. Given its abundant geothermal resources, robust local expertise, and growing interest from international players, it is foreseeable that Kenya’s share of this total will surpass 8 GW in the projected period. Recent developments in both countries affirm the report’s projections, emphasizing the substantial potential for these nations and the wider region to integrate geothermal energy into their energy mix. With close to 1000 MW already installed, Kenya ranks as the 8th largest geothermal power producer globally and has more geothermal power capacity under construction than any other country, globally. With an ambitious plan to double the current capacity by 2030, the Kenyan government is actively working to establish solid frameworks to support and fast-track the achievement of these targets. In the latest development, legislators in Kenya directed the national utility, Kenya Power, to terminate a deal with Africa Geothermal International due to “continued delays in starting exploration of geothermal power on an allocated block.” This termination will leave KenGen free to directly explore additional blocks in Olkaria, where 34 wells, including 26 production wells and 8 injection wells, with a tipped generation capacity of more than 1100 MW, are yet to be exploited, as reported by the country’s Business Daily. Exploration and development activity is underway, too, at other geothermal sites in Kenya. In August, the Baringo-Silali Geothermal Project successfully drilled a new well, the Paka Well 8-A, adding 20 MW of electricity to the national grid. More such explorations and rollouts can be expected, especially now that Kenya has secured a US$48 million (45 million euros) loan from Germany for the development and upgrade of geothermal wells in the country. There is also a noticeable surge in geothermal activity in Ethiopia, which has the potential to generate at least 10 GW of energy from geothermal sources. In September, the Ethiopian Electric Power (EEP) Geothermal Sector Development Project Directorate announced the successful completion of production tests for six geothermal wells for the 35 MW phase 1 of the Aluto Langano project. The project plans to generate 70 MW in two phases. Earlier that same month, Canada-based 4th Resource signed a memorandum of understanding with Ethiopia Investment Holdings (EIH), the strategic investment arm of the Government of Ethiopia, for the development of the Hermokale geothermal project. These are among the 24 sites that the Ethiopian Geological Survey discovered in 2018 as potential geothermal drilling sites. Interest in harnessing geothermal energy resources is also growing in African countries situated along the same East African Rift System currently being tapped by Ethiopia and Kenya. These countries include Tanzania, Burundi, Rwanda, Uganda, Kenya, Ethiopia, Djibouti, and Eritrea. In Tanzania, 50 sites have been earmarked as potential locations to generate geothermal electricity. Kenya’s electricity generating company, KenGen, is leveraging its expertise and technical know-how to explore drilling opportunities in Tanzania and Malawi. According to The East African, KenGen already operates drilling sites in Ethiopia and Djibouti. Kiiza Hussein, a creative consultant at UNDP, underscores the significance of international collaboration and knowledge sharing in accelerating exploration and rollouts. “African nations can leverage partnerships with countries, organizations, and institutions that have expertise in renewable energy to accelerate their own development,” he explains. “African countries can also allocate resources to research initiatives that focus on adapting and optimizing technologies to their specific climatic and geographic conditions,” he adds. According to the United Nations Environment Program and the Infrastructure Consortium, the geothermal potential capacity for eastern Africa exceeds 20 GW, highlighting the considerable opportunities that lie ahead in the region for geothermal energy. bird story agency Useful link: https://www.rystadenergy.com/news/africa-overtake-europe-geothermal-capacity
Read More
👨🏿🚀TechCabal Daily – MTN might exit three African markets
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning We’d like to make an addendum to yesterday’s edition of TC Daily. The initial version we sent out was headlined “Novastar Ventures closes $40 million Fund”. We have now corrected it to reflect that Novastar Ventures received an $80 million commitment from SBI Holdings. The funds will also be spread across future funds. You can read the update here. In today’s edition MTN might leave Liberia, Guinea-Bissau and Guinea-Conakry Bolt Kenya denies acquisition of Little Cab MTN SA pays $103 million to ICASA WeWork Global files for bankruptcy The World Wide Web3 Opportunities Telecom MTN might exit three African markets Image source: News24 African telecoms MTN is considering exiting three African markets. During its quarterly update call, CEO Ralph Mupita told journalists that the telecoms is engaged in discussions about the potential “orderly exit” of its operations in Liberia, Guinea-Bissau and Guinea-Conakry. While the telecom has yet to reveal why it’s leaving these African markets, its financial reports show that it’s facing numerous challenges across the West and Central Africa region. Mupita pointed to signs of inflation and currency devaluation across several markets. Small markets, small shares: Per Bloomberg, these three countries also aren’t heavy hitters for the telecoms, contributing a scant 1.6% to MTN’s revenue in 2022. Across these countries, the telecom controls a secondary chunk of the market share, about 30% in Guinea-Bissau and Guinea-Conakry, beaten out by Orange Mobile which controls over 60% of the market share in both countries. In Liberia, Lonestar MTN is the second-largest telecom in the country, with Orange Liberia controlling over 50% of the Liberian telecoms market. It’s also not the first time the telecom has hinted at exiting these countries. In May 2023, it was reportedly in talks with Axian Group Limited to sell its assets in these countries. Exiting Afghanistan: The telecom is also nearing a close for its exit from the Middle East. In 2020, MTN announced its plan to exit the Middle East, focusing on Africa to simplify its structure and reduce risk exposure. This decision was driven by increased complexity due to US sanctions on Iran and growing troubles in Afghanistan. Later, MTN sold its Yemen business and stopped operations in Syria and Afghanistan. In August 2022, the company received a $35 million offer for its Afghanistan business and recently confirmed the sale to M1 New Ventures. The group, yesterday, announced that its Afghanistan exit will be complete within two months. Access payments with Moniepoint Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Open an account today here. Mobility Bolt denies acquisition of Little Cab GIF source: Tenor Bolt Kenya, the global ride-hailing company’s subsidiary in Kenya, has denied talks of an acquisition of Little Cab, a Kenyan competitor. This comes after a claim by the Kenyan publication Business Daily that both parties were in talks. Per Business Daily, acquisition talks between Bolt and Little Cab broke down after the National Transport Authority of Kenya (NTSA) renewed Bolt’s annual operating licence. However,Bolt told TechCabal in an email that it had no appetite for acquisition, and had not been in talks with Little Cab for such acquisitions. ICYMI: Bolt’s licence renewal was halted due to multiple assault complaints from customers and riders who wanted the removal of illegal booking fees. The ride-hailing platform then dropped the controversial “illegal” booking fee and opened a local office in Nairobi to resolve driver complaints. While Bolt struggled to get its licence back, Little Cab’s CEO, Kamal Budhabhatti, had mailed Bolt for a possible collaboration in the shape of a merger and acquisition to help solve its licensing woes. However, Budhabhatti made a retreat after Bolt got its licence renewed. Zoom out: A potential acquisition of Little Cab—which is present in Kenya, Uganda, Tanzania, Ethiopia, and Ghana—makes sense for Bolt; it would increase its market share of the ride-hailing company. Little Cab says it is profitable and plans to sell 25% of its stake to private investors. Join the Paystack private beta Paystack has launched a private beta to offer payment tools to businesses in Côte d’Ivoire, Egypt, and Rwanda. Learn more about Paystack’s entry into 3 new markets → Telecom MTN SA pays $103 million to ICASA Image source: Zikoko Memes MTN is paying its debs everywhere it goes. Financial results of the telecom’s South African arm, for Q3 2023, show that the telecom paid R1.9 billion ($103 million) to the Independent Communications Authority of South Africa (ICASA) for an outstanding payment for the low-band 800MHz spectrum it acquired in the 2022 ICASA auction. Dig in: In March 2022, ICASA received bids from telecommunication agencies in South Africa—MTN, Cell C, Liquid Intelligent Technologies, Rain Networks, Telkom and Vodacom —for the auction of its high-demand radio frequency spectrum or International Mobile Telecommunications spectrum. MTN purchased 100MHz in the spectrum auction for R5.2 billion ($281 million) and paid about R3.3 billion ($179 million) to the regulator. This spectrum allowed telecommunications companies to provide better coverage and faster speeds to their customers. MTN was not the only company on the regulator’s debt list, per local media. The ICASA gave other telecom companies up until the end of last month to clear up the R5.8 billion ($312 million) debts. Lights out: Aside from the debt repayment to the ICASA, MTN South Africa’s third-quarter financials showed few positives. Its gross earnings increased from 36.2% in Q1 2023 to 37.2% in Q3. Companies WeWork inc files for bankruptcy, WeWork SA denies affiliation GIF source: Tenor Global workspace provider WeWork Inc. has filed for bankruptcy. Per the Financial Times, the process will allow the company to convert $3 billion of existing debt commitments into equity in the reorganised company. Additionally, the bankruptcy process will allow the company to terminate pre-existing leases with little financial penalty. This comes three months after the company initially warned, in August 2023, that it could
Read More
Flutterwave CFO, two finance executives resign months after company touted IPO plans
Flutterwave’s Chief Financial Officer (CFO) Oneal Bhambani has resigned just 18 months after joining the fintech startup, raising questions about the company’s plans to list on the stock market. Oneal Bhambani has left Flutterwave after just 18 months “Last week, I made the difficult decision to end my tenure at the company,” he shared in a LinkedIn post on Tuesday. “Thank you to Flutterwave for a seat on its journey to scale payments across Africa… I wish everyone at Flutterwave the best, and I will be rooting for you.” “Oneal Bhambani has decided to pursue new opportunities,” said Flutterwave in an email to TechCabal. “Israel Koledowo, Head of Finance for Africa, will lead the finance department on an interim basis as we embark on a global search for a new CFO.” Bhambani joined Flutterwave in May 2022 as Africa’s most valuable startup contended with allegations of financial improprieties and employee bullying. He arrived at the payments company from American Express, where he was CFO of the US fintech’s small business lending arm, formerly called Kabbage, now American Express Business Blueprint. With two decades of experience working in finance, his arrival was expected to steady the ship, and he helped the company navigate fraud allegations in Kenya, East Africa’s largest economy, where Flutterwave didn’t have a license. Bhambani joined Flutterwave alongside two other finance executives from Kabbage with experience in corporate audits and treasury work. Those executives, Rebecca Mendel and Oscar Lan. have also left the company. According to their LinkedIn pages, they both exited the company in October. After Kenyan prosecutors withdrew their charges of financial impropriety against the company, Flutterwave has since returned to high growth territory and touted its plans to list on the stock market although it has declined to give a timeline for an IPO. The company launched a new currency swap product for the Nigerian market and released its redesigned international payments app called Send App. Flutterwave is also doubling down on consumer payments in addition to its primary business segment, which has fueled its growth for years. Bhambani’s exit represents the most high-profile exit from Flutterwave since 2018, when its co-founder and then CEO, Iyin Aboyeji, left the company. The CFO’s departure, however, raises major questions about the fintech, which is backed by Tiger Global and valued at $3 billion, and its IPO plans. *Editor’s note: This article has been updated with a statement from Flutterwave
Read MoreKenya’s $20 billion crypto market takes first step to regulation
The crypto market in Kenya is huge and is already being taxed under the provisions of the Finance Act, 2023. Kenya’s parliament has asked the Blockchain Association of Kenya (BAK) to prepare the first draft of what might become the Virtual Asset Service Provider’s Bill, commonly known as the Crypto Bill. The decision followed BAK’s second appearance before the National Assembly Committee on Finance and National Planning on October 31. BAK’s first engagement with the committee was in August 2023 when it opposed the Digital Asset Tax (DAT) provision in Kenya’s Finance Act, 2023. BAK’s draft preparation coincides with notable cryptocurrency transactions in Kenya, reaching nearly $20 billion (KES 3 trillion) between July 2021 and June 2022. Kenya’s engagement with crypto assets is also high, coming in third position in Africa for crypto site traffic and 21st in global crypto adoption. The meeting between BAK and the National Assembly Committee sought to enable BAK to partner with the national government in shaping cryptocurrency and digital asset regulation policies. BAK, alongside Binance, Yellow Card, Kotani Pay, and the Law Society of Kenya (LSK), presented key elements for a robust regulatory framework, including a clear licencing framework, tax framework, consumer protection framework, anti-money laundering (AML) and counter-terrorism financing measures, and a regulatory sandbox. In response, the parliamentary committee directed BAK to draft and submit a bill governing digital assets within two months. This development acknowledges a knowledge gap that has historically hindered their ability to address this asset class. It also marks a unique instance of a parliamentary committee instructing an association to draft a bill for adoption. BAK’s directive to draft Kenya’s digital asset regulatory framework, including tax integration and revenue guidelines, mirrors efforts in South Africa (Financial Sector Conduct Authority), Nigeria (Finance Act 2023, SEC Regulations on Digital Assets), and Mauritius (Virtual Asset and Initial Token Offering Services Act 2021), which lead in Africa’s crypto market values at $25 billion, $19 billion, and $3 billion, respectively.
Read More